GainBitcoin, the multi-level marketing cryptocurrency scheme accused of scamming investors of their money, has terminated all investment contracts with a promise to issue fresh contracts by the start of next year. This follows a crash in the prices of the GainBitcoin-issued token, MCAP.
Amit Bhardwaj, founder of GainBitcoin, who investors discredit as the mastermind of the Ponzi-like marketing scheme, is presenting the termination of contracts as a reboot of the company’s operations, according to messages and FAQs being put out by early investors in the scheme.
Since we wrote our previous story on the impending implosion in the GainBitcoin empire, the value of MCAP – Bhardwaj’s wonder crypto token that was issued in April promising investors fantastic returns mimicking cryptocurrencies such as Bitcoin – has nosedived. It was trading at around $0.18 at the time of publishing this story — a steep fall from the $2.74 levels it traded a month ago.
With the latest move, the second such pivot in a span of three months, which some investors feel is an eyewash to cover up,unpaid dues to them, all existing contracts with GainBitcoin will be terminated after investors are paid the remaining amounts in one shot as MCAP tokens over one week.
The company will start afresh with new contracts starting January 2018.
This new plan, according to GainBitcoin, will raise the value of MCAP token, which according to the company, has been facing the brunt of profit-taking by some greedy investors.
Dr Deepak, who called himself a first-level investor from Pune, detailed in a message to investors he and his downlinks have brought on board GainBitcoin the crux of the problem as he saw it: “GB is constantly distributing huge payouts regularly to all its customers and also trying simultaneously, through its leaders, to educate all common investors to hold the MCAP payouts. But due to various reasons like real need, lack of understanding, due to misinformation, and jealous rivals and enemies of company, there is fear and distrust among some investors, who sell MCAPs as soon as they get them. There are also some greedy outsiders and some insiders who are making profits by using inside information to trade in MCAPs. So, all the efforts and large amount of money poured in market by GB is going in the wrong pockets and in undesired direction. Hence, the MCAP price is not rising as it should.” (Editor’s note: The message, reviewed by FactorDaily, has been lightly edited for typos and grammar.)
Dr Deepak, who used only one name in his message, said he was part of an GainBitcoin investors meetup in Dubai on November 9 and had attended a “also attended a special meeting with Amit Bhardwaj ji on 10 th November to further get all clarifications from him”.
The new plans for the investors were announced at the Dubai meetup. Here are some key takeaways from the information passed on by the company to the investors.
- All sales by GainBitcoin are being paused for now
- The company will refund all contracts in the form of MCAPs minus the payout already sent to investors
- The company will refund all Ethereum contracts under a new plan the company had offered under what it called the ‘GainBitcoin Phase2’ plan announced this September
- All the old contracts will be paid in one go over the next few days on a prorata basis
A result of these refunds made in MCAP tokens will result in the market being flooded with the crypto token and prices further taking a beating.
The company had a ‘let’s look at the bright side here’ message to investors on the price crash.
“This lowering of MCAP price is a great opportunity for all investors to buy MCAPs at a very, very low price and redeem their losses. Buy MCAPs from the market, as many as you can afford, because once this phase is over when many new schemes like ICO, multiple cloud mining services, and networking etc. are introduced, they are going to take MCAP up in market. If you buy MCAPs at 1 dollar or less today, when it hits even three dollars it is enough to make you big profits,” Dr Deepak said in his message.
A message shared by another early GainBitcoin entrant suggested investors average their buying price of MCAPs. The MCAP price “may go up to 10 cents also but don’t worry, it’s planned and expected and easily reversible. My suggestion in this situation: buy Mcap @ 0.1$ to average out your MCAP value. Example: if you have 1 MCAP @ 10$ and you buy 1 Mcap @ 0.1$, average rate for your 2 MCAPs is 5.05$. So it’s easy to recover your investment by selling Mcap @ 3$, 4$ etc.,” reads the message shared among investors. (Editor’s note: The message, the investment logic of which is not clear, has been lightly edited for typos and grammar.)
According to the second phase of GainBitcoin’s plan, the company has put in place steps that will ensure a rise in MCAP prices.
To start with, the company say’s that it will continue the MCAP staking (read our previous story to know more about this) and will increase Bitcoin mining power to attract more investors to hold onto MCAP.
But according to many investors it will be ages before they make any profits, if at all, at the rate at which MCAP staking method is distributing Bitcoins amongst them. The company claims it has a capacity of mining around 20 BTC a day. Even if all of this is distributed among all GainBitcoin investors, it will amount to a very small fraction for each investor.
GainBitcoin is also in the process of partnering with ICOs to provide which investors can buy into using their MCAP tokens, according to a message from Team GainBitcoin, the account from which the company officially communicates. The company is also said to be integrating MCAP payments with exclusive discounts on other cloud mining services and network marketing companies.
For now, all that seems to be clear is that GainBitcoin is asking for more time with a promise that MCAP prices will rise. “According to AB (Amit Bhardwaj), the company has planned other powerful steps to increase rates further up to 5$ minimum to 10$ up to April 2018,” read the second message being circulated. “Also, all investment contracts will start as a fresh one without MCAP rate difference from Jan 2018 so company not closing down but rebooting.”
Surprisingly, there is silence in the GainBitcoin investor community – numbering over 100,000 by Bhardwaj’s own admission – about this sudden change. This is likely because the company has been forcefully closing down accounts of investors who talk or complain about the cryptocurrency scheme on social media or other forums.
Shrirang Muley, an investor with GainBitcoin who had spoken to us in our previous story, has been locked out of his account after the story was published.
Investor resentment, however, runs wide and deep. A software engineer from Pune, who invested in GainBitcoin in January 2017 with initial payouts in BTC twice every month, is one angry investor. He says he did not take his investments out because the amounts credited to his account were low and GainBitcoin had a minimum threshold below for cashing out. Before he knew it, he says, Bhardwaj had launched the MCAP tokens and since April he has been receiving payouts in MCAPs, the price of which has been languishing from the beginning.
“From April 2017, he (Amit Bhardwaj) has been changing his policies and we were forced to take MCAP,” says this investor, who is unhappy about the new changes but feels helpless. “The support team never responds. He has told many things in the past… they keep changing and he never keeps his promise to investors.”
According to the investor, who does not want his name taken over worries that he will be locked out by GainBitcoin managers, there was a small rush to buy MCAP tokens when Ethereum mining contracts were announced in September, as you needed MCAP to buy these mining plans, but the investors who bought MCAPs then are in a big loss now. “These investors bought MCAP tokens when they were worth around 62,000 Satoshis and today once their issued refunds for their Ethereum mining contracts, they will be left with MCAP tokens which are worth only around 5000 Satoshis,” he says. One Satoshi is equivalent to a Bitcoin divided by one hundred million.
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